Council approves $1.5M contract amendment for schematic design of downtown garage, hotel and conference center amid financing questions

The Jefferson City Council approved Amendment No. 2 to the predevelopment services agreement with Garfield Public Private LLC to continue schematic design for the proposed downtown parking garage, hotel and conference center and to extend predevelopment work through Sept. 30. The amendment increases the project budget for predevelopment services by $1.5 million, according to staff presentations during the meeting.

Luke Holzire of the Jefferson City Regional Economic Partnership described the next phase as schematic design and said the schematic design phase ‘‘is gonna be going through September. So it's 3 months.’’ The schematic design work is intended to advance structural, mechanical, electrical and plumbing design; engage interior and exterior consultants; and solicit hotel brand proposals to refine the product, cost estimate and plan of finance.

Consultants and city staff told council members that the schematic design work will inform more accurate cost estimates and financing options. Mark Bullard, joining virtually, said rapid progress is important: ‘‘If we continue to push out and delay, the possibility of capturing that business and that revenue becomes less and less likely.’’ He added that delaying the work by a quarter could increase project costs by about a million dollars because of national inflationary trends.

Council members sought clearer financial detail before committing to further phases. Several members asked for the most recent financing analyses and asked staff and consultants to present updated revenue and gap figures that identify identified revenue sources, bond models and the remaining shortfall. Staff said there are active efforts with financial advisers and bond underwriters to further refine the plan of finance and pursue additional funding options, including bond revenues, tax credits and other potential sources, and that a meeting with financial advisers was scheduled the day after the council meeting.

The council also discussed the timing of geotechnical work and demolition: consultants told the council that geotechnical services would be contracted immediately and that mobilization could start in two to three weeks; consultants aimed for a two‑to‑three‑month geotechnical schedule. City and consultant representatives said demolition of the existing downtown garage is being coordinated on a parallel track so the period between demolition and new construction is minimized.

Councilors raised questions about public notice and mitigation for the temporary loss of downtown parking during demolition. Staff said an RFP process to select a third party to develop mitigation strategies is under way and a staff meeting to evaluate proposals was scheduled; options discussed include use of existing city lots, private partnerships and shuttle services.

After extended discussion about schedule and finance, the council approved the amendment on a recorded vote (seven in favor, three opposed). Staff and project consultants said schematic design work will continue and that the city will provide more detailed financial updates to council as they become available.